Arizona budget passes; the cuts total $1.1 billion

State lawmakers delivered on Gov. Jan Brewer's promise to end the days of "expanded government," passing a budget Thursday that eliminates programs and cuts $1.1 billion in spending.

On largely party-line votes, the Republican-controlled Legislature approved an $8.9 billion spending plan that ends a health-care program for 47,000 low- income children, removes 310,000 adults from state health coverage and cuts the funds that were one of the last best hopes for the state parks system to stay afloat.

The cuts are needed, Republicans said, to bring state spending in line with its sagging revenue. Arizona faced a $2.6 billion deficit for fiscal 2011.

House Speaker Kirk Adams, R-Mesa, acknowledged that the cuts were difficult. But they were necessary, he said.

Speaking for many of his fellow Republicans, Adams said lawmakers made choices "they would rather not make. I understand that takes a lot more courage than just to say no."

It was a thinly veiled barb at Democrats, who voted "no" on all the spending bills.

But Democrats shot back that Brewer and the Republicans rushed through a budget that ignored alternatives that wouldn't have cut so deeply into state services.

House Minority Leader David Lujan, D-Phoenix, said lawmakers had alternatives to the deep cuts but ignored them.

"Those of you who are voting for this budget are voting because it's the budget you want," he said. "You are choosing to ignore options."

They complained that many of the budget moves don't merely cut off funding during the coming year but terminate programs such as KidsCare, a children's health-care program, and local transportation funds.

They argued that the permanent elimination of the programs will make it hard to bring them back when the good times return.

Thursday's action didn't end the special session on the budget.

The Senate passed all spending bills but held back two other bills in the 15-bill package and adjourned until Monday. Senate leaders said they expected to get the needed votes on the repeal of a tax credit, as well as a measure that asks voters to repeal an early-childhood education program, after a weekend when tempers would cool. Passions flared during Senate debate, leading to a loss of votes.

The budget attempts to close the $2.6 billion deficit in the fiscal 2011 budget, but it hinges on voters approving the repeal of the early-childhood program, known as First Things First, as well as ending a land-conservation program that voters OK'd in 1998. Those two moves would save the state about $500 million. Another $385 million in savings will come from a cutback in the number of people using the state's Medicaid program, the Arizona Health Care Cost Containment System.

State officials estimate that reduction in service will remove 310,000 adults from the health-care rolls.

Health-care officials, the state Chamber of Commerce and Democrats complained that the reduction in AHCCCS service violates the will of voters, who approved the expanded Medicare program a decade ago. And they predicted a lawsuit is likely to follow.

However, there might be some temporary relief, as Congress is moving on a bill that would send Arizona $420 million in Medicaid dollars that would tide the state through to July 2011.

The state Department of Juvenile Corrections got a one-year reprieve. Lawmakers struck a deal to calm distressed county officials who said a proposal to shift the $63 million program onto them would force many counties into bankruptcy.

Instead, Maricopa and Pima counties will contribute money to keep the program going, and state officials have said they will find other cost savings.

"I do not seeing us clothing the naked. I do not seeing us feeding the hungry," state Rep. Tom Chabin, D-Flagstaff, said.